All major Indian cities, including Delhi and Mumbai, have seen an increase in CNG prices of Rs 2 a kilogram, putting additional pressure on consumers who are already feeling the pinch in the wake of the new petrol and diesel raise.
Motorists in cities such as Delhi and Mumbai have confronted rising transport and fuel prices after the latest revision. The spike is driven by investors’ worries over world energy markets that have risen in the wake of flare-ups around the strategically important Strait of Hormuz.
The Hormuz crisis has fueled fear of supply disruptions and the surge in global crude oil and gas prices, compelling fuel companies to increase prices at home. CNG users, private and taxi drivers, auto-rickshaw drivers and commercial transport services could be exposed to higher operating costs in the wake of the latest rise.
If fuel increases still more, public transport prices could also be revised in the coming days. The concurrent rise in the price of petrol, diesel and CNG can also create upward pressure in each industry, experts in the region say. It lifts transport expenses, translating to costs of vegetables, groceries, logistics and basic goods and, by extension, household accounts and spending.
The fresh update was in reaction to international market swings and the higher cost of importing fuel, merchants quoted the news agency. India is still dependent on imported energy. Domestic prices are exposed to international political factors. Consumers in Delhi or Mumbai were alarmed as fuel prices kept rising, especially those who are daily commuters and small operators.
Several commercial vehicle companies mentioned that a series of increases in their prices may affect profitability and service charges. Economists warn that if tensions in the Middle East persist as they do now, but with crude prices at a high level, a price revision might well follow over the next few weeks and drive the price of fuel higher.
The government is watching extremely closely because higher fuel prices might affect general inflation and economic activity. On another note, the price of fuel has just risen, and the debate for tax cuts and a solution for long-term energy is on again, leading experts to suggest that we need more investment in electric mobility and renewables in order to wean ourselves off more imported fossil fuels.
